What was the reported net loss for Degree Wellness as of December 31, 2024?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Assets | |
|---|---|
| Cash | $ 428,587 |
| Deferred franchise fees (note 3) | 2,092,659 |
| Prepaid expenses and other | 27,319 |
| Right-of-use assets, operating leases (note 6) | 155,795 |
| Total assets | $ 2,704,360 |
| Liabilities and Members' Deficit | |
| Liabilities Accounts payable - related party (note 2) Accounts payable - trade Accrued liabilities |
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the company experienced a net loss of $887,276 for the period from April 1, 2024, through December 31, 2024. This net loss is a significant figure that any prospective franchisee should carefully consider.
Furthermore, as of December 31, 2024, Degree Wellness had a members' deficit of $440,264. It is important to note that the financial statements were prepared under the assumption that Degree Wellness would continue operations, allowing for the realization of assets and liabilities in the normal course of business.
Degree Wellness's ability to continue as a going concern is supported by pledges from its members, Franworth, LLC and Everyday Holdings LLC, to provide the necessary working capital and capital contributions to offset operating losses. Management believes that this financial support will enable Degree Wellness to sustain its operations through March 24, 2026. This reliance on member contributions to cover losses is a critical factor for potential franchisees to understand, as it indicates a dependence on external funding to maintain operations.